The Australian Council of Superannuation (ACSI) has welcomed Westpac’s chief executive and board changes in the wake of the bank’s money-laundering scandal and says the crisis warrants further board renewal in the new year.
ACSI chief executive, Louise Davidson, said that long-term investors had made it clear to Westpac that accountability was required and this included proportionate action to improve governance and for the impact of events to be fully reflected in remuneration outcomes.
“The actions taken today reflect the seriousness of the incidents and the failure of the bank to meet community expectations. ACSI will continue to engage with Westpac on a range of issues to determine whether further action is needed,” she said.
“It is still unclear how these significant issues came to occur, and why a fulsome investigation was not initiated earlier.
“Investors want to see Westpac’s culture and governance strengthened to avoid a repeat of these issues. We believe that this crisis warrants further board renewal in the new year to support rebuilding public trust.”